In a statement the Church of England said: "The Church Commissioners no longer have any financial or any other interest in Wonga.

Wonga recently paid £2.6m customers that received fake lawyer letters

"The Church Commissioners estimate that if they had had to sell their entire venture capital holdings they might have lost £3-9m to remove the exposure to Wonga, which was worth less than £100,000.

"The Commissioners are pleased that another way forward has been agreed given their fiduciary duties to clergy pensioners and to all the parts of the Church they support financially."

Video:Wonga makes 'Fake Legal Threats'

The statement continued: "The Commissioners' focus remains the mission they share with the Archbishop of Canterbury - supporting the ministry and growth of the Church of England.

"The Commissioners will also continue to seek ways, consistent with their fiduciary duties, to support the Church's priority of promoting responsible credit and savings."

The declaration comes a year after the leader of the Church of England - the Archbishop of Canterbury - vowed to "compete" Wonga out of existence, when it was first revealed the Church invested in the company.